Nikola Slumps After No-Details Denial of Short-Seller Report (5)

Nikola Corp. shares dropped 15% after the company issued a blanket denial of allegations made in a short-seller report without offering any specifics to refute allegations it lied about its technology and staged events.

The setback wiped out all gains in the stock since the company went public through a reverse merger in June.

The electric-truck startup said allegations made by Hindenburg Research are false but did not provide evidence to refute specific claims in the report. Chairman and founder Trevor Milton had vowed earlier Friday to issue a detailed rebuttal after “working through the night.”

Nikola instead hired law ...